MeadWestvaco Increases Sales but Misses Estimates on Earnings
MeadWestvaco (NYS: MWV) reported earnings on Jan. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MeadWestvaco beat expectations on revenues and missed on earnings per share.
Compared to the prior-year quarter, revenue was unchanged, and earnings per share dropped to a loss.
Margins dropped across the board.
MeadWestvaco recorded revenue of $1.5 billion. The seven analysts polled by S&P Capital IQ expected revenue of $1.5 billion. Sales were 13% higher than the prior-year quarter's $1.5 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.26. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.27 per share on the same basis. GAAP EPS were -$0.09 for Q4 compared to $0.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 19.9%, 540 basis points worse than the prior-year quarter. Operating margin was 4.6%, 690 basis points worse than the prior-year quarter. Net margin was -1.0%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.4 billion. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $6.2 billion. The average EPS estimate is $1.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members out of 111 rating the stock outperform, and 19 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give MeadWestvaco a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MeadWestvaco is outperform, with an average price target of $35.00.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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